GORO up .26 on 5.2 M shares or $27 million in volume today. Looks like Hochschild sold another large chunk of their shares, but someone thought they were worth more than the market price. Was probably arraigned by the company.
GORO has turned things around operationally, but the share price has been lagging. The reason is that Hochschild has been raising money for home operations, selling GORO and causing an overhang on GORO shares for nearly a year. They owned nearly 20% stake in GORO and are now down to between 2 and 3 million shares. One more shot and their done.
Hochschild Mining buys out Peruvian assets
Reuters
October 2, 2013 4:03 AM
LONDON, Oct 2 (Reuters) - Latin American precious metalsfirm Hochschild Mining said it planned to raise up to$96 million to help it buy the remaining 40 percent stakes inits Peruvian assets for up to $280 million.
Remember Q1 GORO Posted net earnings of 13 cents per share with cash costs at $422 and AISC costs at $816. These are nearly sector leading numbers, while they paid sector leading dividend as well.
The best part is the future, as they just doubled the capacity of their mill, and are working on the underground to get production to full capacity of around 150,000 oz/year. The ramped up exploration side is showing good signs, that they will get the mill to full capacity. If the new switchback area draws a production decision, they could be planning for another bump in production in the near future.
Checkmate
